Austin Based Ribbon Finalizes $2.7M In VC Funding
Summary
Ribbon announced it has closed $2.7 million in venture capital funding to enable the Austin-based startup to roll out its unique fiscal sponsorship model for the burgeoning nonprofit industry.The companys fiscal sponsorship model allows individuals looking to conduct charitable work to partner with existing 501c3s to help them accomplish their goals while enjoying the sponsors tax-exempt status.We believe starting a new charity should be quick, easy, and effortless. In a crowded market, there is growing demand for a platform that makes charitable work more accessible without the need to create a new 501c(3).You can start a company in a day for a few hundred dollars, but a nonprofit can take years and thousands of dollars, not to mention countless hours working through legal red tape. In time, Ribbon estimates that about 20 percent of new organizations will eventually need their own 501c(3) status; the rest will be Ribbon customers who benefit from the sponsorship model.Imagine the good that could be accomplished if people who wanted to do charitable work could, in effect, create a nonprofit in minutes, enable tax-deductible donations instantly, and not have to manage their nonprofit status. With IRS backlogs and the acceleration of Open Banking APIs, the industry is ripe for this product.Open banking is a system under which banks make their application programming interfaces (APIs) accessible for third parties to develop new apps and services.Ribbons fiscal sponsorship model will be the first product to allow this to happen in the nonprofit sector, Finberg explained.As noted in the update, you can use Ribbon to save time, money, and effort when you start a charity by connecting with a fiscal sponsor. Their all-in-one platform gives you the banking, accounting, fundraising, and organizational tools you need to build a successful charity under the umbrella of your fiscal sponsor.As mentioned in the announcement, Trust Ventures is a venture capital fund that helps innovators navigate policy barriers in the worlds largest industries and bring life-changing technologies to market.Trust Ventures has helped portfolio companies unlock access to their innovations for hundreds of millions of Americans.